Skip to main content

Looking for Valuant? You are in the right place!

Valuant is now Abrigo, giving you a single source to Manage Risk and Drive Growth

Make yourself at home – we hope you enjoy your new web experience.

Looking for DiCOM? You are in the right place!

DiCOM Software is now part of Abrigo, giving you a single source to Manage Risk and Drive Growth. Make yourself at home – we hope you enjoy your new web experience.

Looking for TPG Software? You are in the right place!

TPG Software is now part of Abrigo. You can continue to count on the world-class Investment Accounting software and services you’ve come to expect, plus all that Abrigo has to offer.

Make yourself at home – we hope you enjoy being part of our community.

Portfolio Risk & CECL

Practical CECL Transition – Amortized Cost Basis

The Current Expected Credit Loss (CECL) accounting standard, ASU 2016-13 (Topic 326), outlines that the allowance for credit losses should be a valuation account deducted from the amortized cost basis of financial assets. Amortized cost basis includes, but is not limited to, adjustments for accrued interest, unamortized premium and discounts, and net deferred fees or costs. Entities’ valuation techniques should present the net amount expected to be collected on the financial asset. This document is intended to cover amortized cost basis application, specific guidance, and conceptual soundness under the context of ASU 2016-13 (Topic 326).

In this whitepaper:

  • Amortized cost fields and descriptions
  • Amortized cost basis considerations for DCF
  • Example scenarios of application

Download Whitepaper